1989 (5) TMI 11

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....ome-tax Act, 1961, relating to the assessment year 1976-77, the following question of law has been referred to this court : "Whether, on the facts and in, the circumstances of the case, the Tribunal was justified in holding that expenditure of Rs. 9,487 not being an entertainment expenditure within the meaning of section 37(2B) of the Income-tax Act, 1961, was an admissible deduction under sect....

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....ome was worked out at Rs. 10,38,000. In the assessment, a sum of Rs. 24,329 was disallowed under section 37(2B) of the Income-tax Act, 1961, as entertainment expenditure. That apart, the Income-tax Officer disallowed business promotion expenses of. Rs. 9,487 which were on account of a dinner party at Grand Hotel, Calcutta, for inviting the buyer's representatives who came from different European c....

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....yers of jute and jute goods. Their representatives visited this country for the purpose of business. Experts from jute mills were also invited. The subject-matter of discussion was quality control of jute goods. They met at a dinner party for discussing certain vital issues which were directly concerned with the assessee's business activities. A dinner party no doubt introduces an, element of hosp....